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HMRC internal manual

VAT Valuation Manual

HM Revenue & Customs
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Valuation of acquisitions: the law

The valuation provisions relating to acquisitions are contained in section 20 and Schedule 7 of the VATA 1994. Section 20 contains the general rules and Schedule 7 the rules that apply in specific situations. The Value Added Tax Regulations 1995 Part XII (Valuation of Acquisitions) (SI 1995 No 2518 Regulations 96 and 97) also deal with the valuation of acquisitions upon which excise duty is payable and mirror the provisions of paragraph 2, Schedule 7 of the VATA 1994. In most cases, the provisions apply the same principles to acquisitions that section 19 and Schedule 6 apply to supplies.

The following paragraphs show you what aspects are covered by the sub-sections of section 20 and Schedule 7. Explanatory comment is only given where there is a difference of principle between these provisions and those of section 19 or Schedule 6.